March 6, 2023 - Update
Posted: Mar 06 2023
This Week at the Legislature
As legislators returned to the Capitol Wednesday from the crossover break, a storm that brought over a foot of snow to Bismarck delayed activities until the afternoon. This week, appropriators are hearing overviews of budget bills as agencies look to restore or amend changes made by the first chamber. Policy committees eased in with committee hearings and work sessions to act on bills for Friday’s floor session. Next week, the Legislature will be back in full swing with bill hearings and a full week of floor votes.
Allen Knudson from the Legislative Council presented to both Appropriations committees, sharing the Crossover budget report. There have been roughly $1.2 billion cuts in revenue, as the House reduced revenues by $893 million and the Senate by $212 million in the first half of the session. The largest decrease to revenues from the House totals $566.4 million from HB 1158, the personal income tax reduction bill. Two bills—one in each chamber – allocate motor vehicle excise taxes to the state highway fund rather than the general fund, accounting for another $169 million in reduced revenue. Additionally, both chambers passed competing pension reform bills that would transfer either $240 or $250 million (depending on which survives—if either does) to the Public Employee Retirement System. This is one of the largest deficits at a crossover break; however, there is more funding available this year.
On the spending side, the House has spent $3.4 billion, a 40% increase, while the Senate has spent $2.77 billion, a 30% increase. The Senate did have larger budgets including DHHS (Human Services) and DPI (Public Instruction) before March. Both chambers increased the ongoing spending at the same rate, 20.5%. We also learned that $14 million in federal ARPA (American Rescue Plan) funding is still available for appropriation. The updated budget forecast will be provided to appropriators on March 14 and 15.
Hearings and Other Action Last Week (3.01.23 - 3.03.23)
HB 1068 – Residential Mortgage Loan Servicers
The Senate Industry and Business Committee heard HB 1068 Wednesday afternoon. HB 1068 was introduced at the request of the Department of Financial Institutions. Commissioner Kruse testified in support of the bill, which deals with residential mortgage loan servicers. Kruse explained the typical structure for residential mortgages includes a lender who originates the loan and a servicer who services the loan. Companies may originate loans, service loans, or both. In North Dakota, only the loan originators are required to have a license. HB 1068 requires servicers to also be licensed. When the bill was in the House, the Appropriations Committee amended the bill, reducing the requested FTEs from two to one and reducing the fiscal request from $463,000 to $225,000. Although the bill does not have a direct impact on North Dakota banks, NDBA’s Rick Clayburgh testified in support of the legislation, requesting the reinstatement of the original requested funding and FTEs. There was no additional testimony, and the committee gave the bill a 4-0-1 do pass recommendation and re-referred the bill to the Senate Appropriations to address the funding issues.
SB 2090 – Residential Mortgage Lenders
The House Industry, Business & Labor Committee heard SB 2090 Wednesday afternoon. SB 2090 was introduced at the request of the Department of Financial Institutions. The purpose of this bill is to remove residential mortgage lending from the money broker statutes and create stand-alone statutes. Lise Kruse, Commissioner of Dept. of Financial Institutions, explained residential mortgage lending differs from other types of lending and grouping all lenders together has created confusion and difficulties for the industry to figure out which provisions apply. Kruse testified that creating a separate chapter for residential mortgage lending will make things easier for all parties. Although the bill does not have a direct impact on North Dakota banks, NDBA’s Rick Clayburgh testified in support, explaining the Association supports the department’s effort to update and clarify the statutes under its jurisdiction. There was no opposition, and the committee gave the bill an 8-0-6 do pass recommendation. The bill passed the full House 79-6 Friday afternoon and is now headed to the Governor for his review.
SB 2092 - Voluntary Liquidation of Credit Unions
The House Industry, Business & Labor Committee heard SB 2092 Wednesday afternoon. SB 2092 was introduced at the request of the Department of Financial Institutions. Commissioner Kruse testified in support of the bill, which deals with the voluntary liquidation of a credit union. Kruse explained the process for voluntary liquidation of credit unions is currently in a stand-alone chapter of the code. The bill repeals the current chapter and places the liquidation process in the same chapter of code as voluntary bank liquidations. Several changes to the existing process are included to mirror federal requirements. The bill also addresses when the department’s orders against fraud perpetrators become effective. Currently, the orders are effective upon service. With passage of this bill, orders are effective upon issuance. This also mirrors federal law. Commissioner Kruse offered an amendment to address a drafting oversight regarding outdated language about unclaimed property. There was no opposition, and the hearing was closed. The committee adopted the Commissioner’s amendment 9-0-5. They did not act on final passage and are holding the bill in committee.
SB 2119 Regulation of Money Transmitters
The House Industry, Business & Labor Committee heard SB 2119 Wednesday afternoon. SB 2119 was introduced at the request of the Department of Financial Institutions. Commissioner Kruse testified in support of the bill, which deals with the regulation of money transmitters. The bill repeals the existing chapter and creates a new chapter in the code regarding money transmitters. Kruse explained the new chapter enacts the “Money Transmission Modernization Act” which is a nationwide set of standards governing money transmitters. She noted the model law provides states with the tools needed to oversee money transmitters of all sizes, including those that operate globally or small businesses operating locally. There was no opposition; however, there were a couple of committee members who expressed concern about being one of the first states to adopt the model regulation. The hearing was closed without the committee acting.
SB 2111 - Electronic Certificate of Title
The House Transportation Committee heard SB 2111 Thursday morning. SB 2111 was introduced at the request of the Department of Transportation. Brad Schaffer, Interim Director of Department of Transportation, explained that allowing electronic form of title eliminates costs, makes the process more efficient, and makes it easier to transfer titles since most if not all title documents are stored electronically already. The bill allows for either paper or electronic form, giving lenders and owners the option of which form to use and prefer. NDBA’s Rick Clayburgh and ICBND’s Barry Haugen testified in favor of the bill. There was no opposition, and the committee gave the bill a 10-4-0 do pass recommendation. It passed the full House 74-11 Friday afternoon and is now headed to the Governor for his review.
HB 1107 – Regulation of Real Estate Appraisers
The Senate Workforce Development Committee heard HB 1107 Friday morning. HB 1107 was originally introduced at the request of the ND Real Estate Appraiser Qualifications and Ethics Board and was intended to update the regulatory oversite statues governing North Dakota Appraisers. The bill was amended in the House by removing AMC appraisal review restrictions and adding a specific exemption for the Bank of North Dakota, allowing their continued property valuations and appraisal reviews for North Dakota financial institutions. During the Senate hearing, Corey Kost, Chair of the Appraiser Board, testified in opposition to the BND language. Dean Rylander, Chair of the Government Affairs Committee of the ND Appraisers Association, testified in support of the legislation, including the BND provision. Rylander offered amendments to the bill which would also allow ND appraisers to do valuations. DFI Commissioner Lise Kruse, NDBA’s Rick Clayburgh and ICBND’s Barry Haugen testified in support of the legislation regarding BND’s exclusion and would oppose any attempt to remove the provision from the bill. In addition, Clayburgh explained the history of BND’s collateral valuation program and that it was developed at the request of NDBA and ICBND and approved by the Legislature. The hearing was closed without committee action.
Hearings Next Week (3.6.23 – 3.10.23)
03/06/2023 02:30 PM
HB 1082
Relating to the adoption of the Uniform Commercial Code amendments (2022) relating transactions involving digital assets especially relating to (a) negotiability for virtual (non-fiat) currencies, (b) certain electronic payment rights, (c) secured lending against virtual (non-fiat) currencies, and (d) security interests in electronic (fiat) money, such as central bank digital currencies. The amendments also address other technological developments affecting electronic chattel paper, negotiable instruments, payment systems, electronic documents of title, and sales and leases of goods.
Senate Judiciary
NDBA Priority
03/07/2023 08:00 AM
SB 2263
Relating to escrow accounts.
House Industry, Business and Labor
NDBA Priority
03/07/2023 09:00 AM
HB 1095
Relating to the inclusion of comprehensive medication management services in health benefit plans.
Senate Human Services
Trust
03/07/2023 09:30 AM
SB 2217
Relating to the calculation of interchange fees for electronic payment transactions; and to provide a penalty.
House Finance and Taxation
NDBA Priority
03/07/2023 09:30 AM
HB 1215
Relating to the filing of business incentive reports; and to repeal chapter 54-60.1 of the North Dakota Century Code, relating to business incentives, agreements, and reports administered by the department of commerce.
Senate Industry and Business
Tracking
03/07/2023 10:15 AM
HB 1225
A BILL for an Act to provide an appropriation to the tax commissioner for the development of an online portal for electronically accessible statewide property information and property tax information.
Senate Finance and Taxation
Tracking
03/07/2023 10:45 AM
HB 1227
Relating to a cost-benefit analysis for a measure or policy affecting the legacy fund.
Senate Industry and Business
Tracking
03/07/2023 11:00 AM
SB 2296
Relating to limiting judicial deference to governmental entities; and to provide for a legislative management study.
House Judiciary
Tracking
03/07/2023 02:15 PM
HB 1188
Relating to the prohibition of unfair service agreements.
Senate Industry and Business
Tracking
03/07/2023 02:30 PM
SB 2140
Relating to public employee insulin drug and supplies benefits; to amend and reenact subsection 2 of section 26.1-36.6-03 of the North Dakota Century Code, relating to self-insurance health plans; to provide for a report; to provide for application; to provide an expiration date; and to declare an emergency.
House Human Services
Trust
03/07/2023 02:45 PM
HB 1190
Relating to real estate wholesale buyers and sellers; and to amend and reenact sections 43-23-06.1 and 43-23-07 of the North Dakota Century Code, relating to practicing as a real estate broker or salesperson.
Senate Industry and Business
Tracking
03/08/2023 09:30 AM
HB 1291
Relating to execution of a judgment.
Senate Judiciary
Tracking
03/08/2023 10:30 AM
HB 1450
Relating to the definition of pregnancy in our discrimination laws.
Senate Industry and Business
Tracking
03/08/2023 11:00 AM
HB 1499
Relating to an interest rate buydown program for homeowners with a primary residence mortgage.
Senate Industry and Business
NDBA Priority
03/08/2023 11:00 AM
HB 1083
Relating to the adoption of the Revised Uniform Law on Notarial Acts (2021).
Senate Judiciary
NDBA Priority
03/09/2023 09:00 AM
HB 1108
Relating to international climate control regulations.
Senate Energy and Natural Resources
Tracking
03/09/2023 10:30 AM
HB 1014
A BILL for an Act to provide an appropriation for defraying the expenses of the industrial commission and the agencies under its control; to provide for a transfer; and to provide an exemption. Includes a BND retention incentive program.
Senate Appropriations - Education and Environment Division
NDBA Priority
03/09/2023 02:00 PM
HB 1014
A BILL for an Act to provide an appropriation for defraying the expenses of the industrial commission and the agencies under its control; to provide for a transfer; and to provide an exemption. Includes a BND retention incentive program.
Senate Appropriations - Education and Environment Division
NDBA Priority
03/09/2023 02:30 PM
HB 1008
A BILL for an Act to provide an appropriation for defraying the expenses of the department of financial institutions; and to provide an exemption.
Senate Appropriations - Government Operations Division
NDBA Priority
03/09/2023 02:30 PM
HB 1133
Relating to statements of full consideration.
Senate Energy and Natural Resources
Tracking
03/10/2023 08:30 AM
HB 1014
A BILL for an Act to provide an appropriation for defraying the expenses of the industrial commission and the agencies under its control; to provide for a transfer; and to provide an exemption. Includes a BND retention incentive program.
Senate Appropriations - Education and Environment Division
NDBA Priority |
How to Contact Your Legislators
During a legislative session, a legislator can be reached at the State Capitol through:
Otherwise, a legislator can be reached by mail, telephone or email at the address listed in the legislator’s biography, or one of the lists provided below. Individual legislator contact information is listed here:
Over the course of the session, NDBA may ask you to call your Senator or Representative to talk to them about a particular bill or to ask them to support or oppose a particular bill.
Legislator contacts from local bankers are extremely important, so, please, if we ask, contact your legislators!
Also, local legislative forums are great to attend because they inform you about issues beyond banking and let you get to know your legislators at home where they are most responsive to your interests and concerns.
Don’t be a stranger; get to know your representatives in Bismarck!